Updated
Updated · News 12 Hudson Valley · Jul 24
Visa Sees $36 Trillion Wealth Transfer, With $28 Trillion Likely Saved by Richer Heirs
Updated
Updated · News 12 Hudson Valley · Jul 24

Visa Sees $36 Trillion Wealth Transfer, With $28 Trillion Likely Saved by Richer Heirs

3 articles · Updated · News 12 Hudson Valley · Jul 24

Summary

  • $36 trillion will pass from baby boomers to Gen X and millennial households over the next 20 years, Visa estimates, far below widely cited forecasts above $100 trillion.
  • Visa says retirement spending, debt, taxes and charitable giving sharply reduce what heirs ultimately receive, and about three-quarters of recipient households already have above-median net worth.
  • $28 trillion of that inherited wealth is expected to be saved or invested, leaving about $8 trillion to be spent on goods and services and limiting any broad lift to consumer demand.
  • Housing, autos, travel and retail could still see clearer benefits, while parental help with home down payments and multigenerational travel already show how the transfer is shaping spending patterns.
  • Baby boomers currently hold at least $93 trillion in assets, underscoring the scale of the shift even as Visa expects only a modest economy-wide consumption boost.

Insights

If the great wealth transfer won't trigger a spending boom, where exactly is that $36 trillion hiding?
Why are millennials receiving inheritances decades early, and how is it secretly reshaping the housing market?